Marketers to Spend More on Display Advertising vs. Search Advertising in 2016

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According to a newly released study from eMarketer, display advertising is going to eclipse search advertising this year, for the first time ever in the US.

In 2016, it’s expected that marketers will spend more on banner ads than any other type digital advertising — including video advertising, rich media, and sponsorships. For every 5 dollars spend on all types of digital advertising this year, 1 of those dollars will be going to banner advertising.

While banners and “other” advertising will command the lion’s share of digital ad dollars, the amount of ad spend expected to go toward video advertising is expected to be considerable as well.

Video will make up 14.3% of ad spend, up from 12.8% last year. Ad spend on rich media is expected to grow by 36.4%, driven by the adoption of “out-stream” and in-feed video ad formats

Making up 28.5% of projected digital ad spend, the majority of those video ad dollars in the US will be spent on desktop. That makes it the only ad unit in which marketers are spending more to display them on desktop than mobile.

Mobile is clearly the priority for advertisers this year if the numbers are anything to go by. Of the 22.58 billion expected to be spent on digital advertising, 77.5% of it will be spent to reach people on mobile devices.

Further growth in display advertising, eMarketer argues, is only possible if investments can be made to improve cross-device capabilities, programmatic advertising, and being able to address the growing threat of ad blockers.

Featured Image Credit: Bacho / Shutterstock.com 

Matt Southern

Matt Southern

Lead News Writer
Matt Southern is the lead news writer at Search Engine Journal. His passion for helping people in all aspects of online marketing flows through in the expert industry coverage he provides.
Matt Southern
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  • https://medium.com/@DigitalSumit Sumit Sharma

    What about spend in Asian region by advertisers, any reports?